I think this is the real rationale, from belocs-locales-bin 2.3.4-2:
* sbin/locale-gen: Do not call localedef with --no-archive flag by
default. A new --archive command line flag is added.
The rationale is that with an archive it is not possible to mix
system and user defined locales by setting LOCPATH.
--
Research the adoption of locale-archive by default
https://bugs.launchpad.net/bugs/55906
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